- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
- Subject 5. Portfolio Risk
CFA Practice Question
Standardizing the covariance of returns between two assets by the individual standard deviations yields the ______.
B. covariance
C. variance
D. correlation coefficient
A. standard deviation
B. covariance
C. variance
D. correlation coefficient
Correct Answer: D
Standardizing the covariance of returns between two assets by the individual standard deviations yields the correlation coefficient.
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